Cheque Dishonour under S.138 of Negotiable Instruments Act, 1881 and Liability in Cases of Partners/ Partnership Firms

Cheque Dishonour under S.138 of Negotiable Instruments Act, 1881 and Liability in Cases of Partners/ Partnership Firms

Section 138 - Liability of Partners - The issue in this case was "whether the partners who have retired from partnership firm can be prosecuted for an offence punishable under Section 138 of the Negotiable Instruments Act, 1881, for a cheque that is rendered by the existing partner." - Held, "statutory liability or statutory obligations are different under the Partnership Act, 1932 or the Companies Act"  - "Unless there is specific averment of the involvement of the retiring partners in the complaint and continued liability, cannot be hauled into the proceedings." - Jai Agarwal v. Inflow Technologies Pvt Ltd [2024] GCtR 3459 (Karnataka)